Long road ahead for Eletrobras privatisation

Author: John Crabb | Published: 5 Jan 2018

The upcoming privatisation of Brazilian utilities company Eletrobras will have to overcome significant legal and political obstacles if it is actually happen this year. Among other issues, the company will be forced to separate multiple assets and clarify its intentions to retain a golden veto provision following the sale.

Centrais Eletricas Brasileiras, widely referred to by the name of its holding company Eletrobras, is in line to be privatised this October as incumbent President Michel Temer looks to reduce the influence and hold of the country’s government before exiting his role in December.

The company controls around 30% of Brazil’s entire power generation potential and much of its transmission lines, and is the largest of its kind in Latin America. The government currently holds a 51% controlling vote and a 41% stake.

KEY TAKEAWAYS

Brazilian utilities company Eletrobras has announced that it will undergo a privatisation in Q3...


 

 

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